How healthy is your bottom line? Will you survive to 2023?
Businesses which survive are those businesses that do the basics well.
Forget about the bells, whistles and window dressing, as they do not contribute to the bottom line.
It reminds one of an article written about the corporate collapse. The first signs are the three F’s.
In America, corporate head offices which had Flags, Fountains and Fishponds did not survive the obstacle course of increasing shareholders wealth.
In today’s environment it is more important to understand the risks and take appropriate action early and your business needs the correct tools to do THAT!
Today it has moved on from the 90’s and shareholder’s wealth is but a small (albeit an important part of the whole,
People have to look to the business as not merely a money generation machine. We have to realise that its people’s lives that are involved.
A social responsibility has also come to play within it all. So it is even more imperative that we are successful.
In the book “The boy, the mole, the fox and the horse” by Charlie Maskesy, the mole explains how he got the boy a piece of cake. When the boy says that he is pleased and asks the mole for it, the mole replies that he ate it.
So it is in business.
It is no good explaining to the stakeholders that you made a profit in your business and when they ask where it is you have to say it has been consumed.
A health check of your business is the place to start !
That is why we do M4RI scans in the businesses we help.
- Do you have a simple but detailed daily cash flow which is forecasted into the future that you can rely on?
- Do you understand your financial position of the business through quality, timely and accurate monthly financial reports?
- Do the financial reports have indicators which demonstrate the areas to improve and forecast at the right level of detail to predict future performance?
- What are the key drivers that will lever improvements in your business?
- Are all your processes clearly defined to drive productivity and ensure proficiency of staff to improve the profitability?
If you don’t have adequate answers or responses to the questions we pose above, perhaps we need to chat?
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